7-37 Cash Budget Prepare a statement of estimated cash reccipts and disbursements for October 207 for the Herbal Magic Company, which sells one product, herbal soap, by the case. On October 1,20X7, part of the trial balance showed the following: The company pays for its purchases within 10 days of purchase, so assume that one-third of the purchases of any month are due and paid for in the following month. The cost of the merchandise purchased is $12 per case. At the end of each month, it is desired to have an inventory equal in units to 60% of the following month's sales in units. Sales terms include a 3% discount if payment is made by the end of the calendar month. Past experience indicates that 70% of sales will be collected during the month of the sale, 20% in the following calendar month, 5% in the next following calendar month, and the remaining 5% will be uncollectible. The company's fiscal year begins August